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Charities Aid Foundation Retail Charity Bond 5% due 2026

Charities Aid Foundation Retail Charity Bond 5% due 2026

The information contained herein may only be released, published or distributed in the United Kingdom, the Isle of Man, Jersey and the Bailiwick of Guernsey in accordance with applicable regulatory requirements. The information contained herein is not for release, publication or distribution in or into the United States, Australia, Canada, Japan, South Africa, the Republic of Ireland or in any other jurisdiction where it is unlawful to distribute this document. The bonds referred to below may only be sold in Jersey in compliance with the provisions of the Control of Borrowing (Jersey) Order 1958 and the Financial Services (Jersey) Law 1998, as amended.

Retail Charity Bonds PLC today announces the launch of the Charities Aid Foundation Retail Charity Bond offering 5% due 2026.

This is the third bond to be issued through the Retail Charity Bonds platform, which was created as an issuing vehicle to enable UK charities to raise medium term debt finance through bonds issued to retail and wholesale investors.

The Bonds will be issued by Retail Charity Bonds PLC and the funds raised will be loaned, via a loan agreement, to Charities Aid Foundation (CAF), one of the largest providers of philanthropic services to charities and donors worldwide.

The Bonds are available to wholesale and retail investors and will pay a fixed rate of interest 5% per annum, payable twice yearly on 12 April and 12 October of each year with the first coupon payment being made on 12 October 2016. The Bonds are expected to mature on 12 April 2026 with a final legal maturity on 12 April 2028.

At any time during the life of the Bond, investors are permitted to sell the Bonds (within market hours and in normal market conditions) on the open market through their stockbroker.

Canaccord Genuity Ltd is acting as Lead Manager on the issue.

The Bonds have a minimum initial subscription amount of £500 and are available in multiples of £100 thereafter. The offer period is expected to close at 12 noon on 6 April. The Issuer retains the right to close the offer early, in conjunction with the Lead Manager.

The Bonds are expected to be listed on the UK Listing Authority’s Official List and admitted to trading on the London Stock Exchange’s regulated market and through the electronic Order book for Retail Bonds.

CAF helps people and companies support the causes they care about and provides financial services for the charity sector. It provides a range of services for individual and company donors, including charity accounts, charitable trusts, and legacy services, company accounts and payroll giving. It also provides fundraising support services for charities, social investment and financial services for the not-for-profit sector, including investments and a range of banking and loans through CAF Bank.

John Low, Chief Executive of CAF, said:

“CAF has a 90 year record supporting civil society by helping people to support charities safely and effectively and helping charities make the most efficient use of their money. The funds raised from this Retail Charity Bond will enable us to further our work in a variety of ways, including expanding services for donors and for charities through CAF Bank.”

Tim Jones, Chief Executive of Allia, added:

“This third Retail Charity Bond issue demonstrates the platform’s track record of providing a new source of unsecured loan finance for charities and enabling investors to make positive social impact. We created Retail Charity Bonds to help charities deliver their social mission, and this bond for CAF will result in widespread benefit across the charity sector.”

Adrian Bell, Head of Debt Markets UK, Canaccord Genuity, said:

“CAF is one of the UK’s largest charities and demonstrates the quality of established organisations with charitable status that Retail Charity Bonds is enabling to access medium term finance and further their charitable objectives. Investors seeking social investment opportunities are able to benefit from a transparent and liquid market that offers a financial return and creates tangible social benefit.”

For further information, please see CAF’s website: www.cafonline.org